Chapter 7 ungc environmental principles

Chapter 7:Embedded Sustainability and the Innovation-Producing Potential of the UN Global Compact’s Environmental Principles

By David Cooperrider and Nadya Zhexembayeva

Principles 7, 8, and 9

Principle 7: Business should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.


The three principles focusing on the environment include a precautionary principle, a product or sustainable technologies innovation principle, and a responsibility principle.


New market pressures are transforming environmental sustainability from annoying obligations into a thriving business opportunity.Three particular sustainability trends:1. Declining resources2. Radical transparency3. Increasing expectations

These have redefined the way we do business.

Why?

Why is sustainability important for everyone?

Bolt-On vs. Embedded SustainabilityKey Dimensions

Bolt-On Sustainability

Embedded Sustainability

Goal Pursue shareholder value

Pursue sustainable value

Scope Add symbolic wins at the margins

Transform core business activities

Customer Offer “green” and “socially responsible” products at premium prices or with diminished quality

Offer “smarter” solutions with no trade-of in quality and no social or green premium

Value Chain

Manage a company’s own activities

Manage across the product or service life cycle value chain

Organization

Create a “scapegoat” department of sustainability

Make sustainability everyone’s job

Levels of sustainable value creation7.

IR nA oD v I aC tA iL o n

6) Business Context

Influencing industry standards

5)Brand Protecting and enhancing brand

4)Market Entering new markets3)Product Differentiating products2)Efficiency Reducing energy, waste,

materials1)Risk Mitigating risk

http://www.unglobalcompact.org/index.html

Key Environmental Challenges loss of biodiversity and long-term

damage to ecosystems pollution of the atmosphere and the

consequences of climate change damage to aquatic ecosystems land degradation the impacts of chemicals use and

disposal waste production depletion of non-renewable

resources

Principle 7

Principle 7: Business should support a precautionary approach to environmental challenges;

Precautionary Approach

What is meant by “precautionary approach”?

Precaution involves the systematic application of risk assessment (hazard identification, hazard characterization, appraisal of exposure and risk characterization), risk management and risk communication. When there is reasonable suspicion of harm and decision-makers need to apply precaution, they have to consider the degree of uncertainty that appears from scientific evaluation.

Steps companies could take in the application of the precautionary approach

Develop a code of conduct or practice for its operations and products that confirms commitment to care for health and the environment.

Develop a company guideline on the consistent application of the approach throughout the company.

Create a managerial committee or steering group that oversees the company application of precaution, in particular risk management in sensitive issue areas.


Establish two-way communication with stakeholders, in a pro-active, early stage and transparent manner, to ensure effective communication of information about uncertainties and potential risks and to deal with related enquiries and complaints.

Use mechanisms such as multi-stakeholder meetings, workshop discussions, focus groups, public polls combined with use of website and printed media.


Support scientific research, including independent and public research, on the issue involved, working with national and international institutions concerned.

Join industry-wide collaborative efforts to share knowledge and deal with issues, in particular production processes and products around which high level of uncertainty, potential harm and sensitivity exist.

Principle 8

Principle 8: undertake initiatives to promote greater environmental responsibility; and

What is environmental responsibility?

In Chapter 30 of Agenda 21, the 1992 Rio Earth Summit spelled out the role of business and industry in the sustainable development agenda as: "Business and industry should increase self regulation, guided by appropriate codes, charters and initiatives integrated into all elements of business planning and decision-making, and fostering openness and dialogue with employees and the public."

Steps companies could take to promote environmental responsibility

Re-define company vision, policies and strategies to include the 'triple bottom line' of sustainable development — economic prosperity, environmental quality and social equity.

Develop sustainability targets and indicators (economic, environmental, social).


Establish a sustainable production and consumption program with clear performance objectives to take the organization beyond compliance in the long-term.

Work with suppliers to improve environmental performance, extending responsibility up the product chain and down the supply chain.

Principle 9

Principle 9: encourage the development and diffusion of environmentally friendly technologies.


Adopt voluntary charters, codes of conduct or practice internally as well as through sectoral and international initiatives to confirm acceptable behavior and performance.

Measure, track and communicate progress in incorporating sustainability principles into business practices, including reporting against global operating standards.

Ensure transparency and unbiased dialogue with stakeholders.

What is an environmentally friendly technology?

Environmentally friendly technology should protect the environment, are less polluting, use all resources in a more sustainable manner, recycle more of their wastes and products and handle residual wastes in a more acceptable manner than the technologies for which they were substitutes. They include a variety of cleaner production process and pollution prevention technologies as well as end-of-pipe and monitoring technologies. They can be considered total systems including know-how, procedures, goods and services and equipment as well as organizational and managerial procedures.

Strategic level approaches to improving technology Establishing a corporate or individual

company policy on the use of environmentally sound technologies.

Making information available to stakeholders that illustrates the environmental performance and benefits of using such technologies.

Strategic level approaches to improving technology Refocusing research and

development towards ‘design for sustainability’.

Use of life cycle assessment (LCA) in the development of new technologies and products.

Employing Environmental Technology Assessments (EnTA).

Strategic level approaches to improving technology Examining investment criteria and

the sourcing policy for suppliers and contractors to ensure that tenders stipulate minimum environmental criteria.

Co-operating with industry partners to ensure that ‘best available technology’ is available to other organizations.

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-1

. . . .we thought we'd look at some of the truly scary facts about the natural world. There's no treat (just the facts)

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-2Global Warming

The overwhelming consensus among credible scientists who study the climate is carbon dioxide and other greenhouse gases, pumped out of our tailpipes and smokestacks, are building up in the atmosphere and driving the warming trend. (By one measure only five scientists have published peer-reviewed scientific papers questioning that consensus view.)

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-3It’s Getting Drier and

WetterScientists predict both severe droughts and historic floods will be a consequence of global warming. How's it possible? In short, the climate is a complicated system, and what it can give with one wind, with another it can taketh away. As weather patterns shift, some areas will be starved of moisture, while in others, warmer air will hold additional moisture that it will unleash in fiercer storms.

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-4There Aren't More Fish

in the SeaAt least half of our favorite food fish and as many as 90% – tuna, salmon, cod and sea bass among them – are at risk of overfishing. Further, the historic shift from wild-caught fisheries to farmed fisheries has depleted smaller fish at the bottom of the food chain, since in many cases, it takes several pounds of wild-caught little fish to make one pound of farmed fish.

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-5Coral Reefs Are

DisintegratingCoral reefs are not only the most beautiful part of the ocean accessible to snorkelers and scuba divers, but also nurseries of the sea: They are home to one-fourth of all marine species, and provide habitat to fish and shellfish that feed half a billion people. Unfortunately, about half of corals in the U.S. and its territories, and as many as 70% worldwide are severely degraded or at risk of extinction.

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-6The Bees Aren't Buzzing

One-third of the nation's commercial bees have been dying off each winter for several years now. Roughly one-third of the food crops we eat is pollinated by bees or other insects. Honey bees are the most important commercial-scale insects up to the task, but other insects do part of the job naturally. However, these wild native pollinators are also in trouble.

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-7Fungus Is Killing Frogs

and BatsOne in three amphibian species is at risk of extinction, with as many as 500 species of frogs, salamanders and the like so near to the end that experts think their only hope is to live in zoos - not the wild. Meanwhile, in caves throughout North America, as many as 90% of bats hibernating are dying of emaciation, with a mark of death in the shape of a white ring around the nose

Seven Scary Truths About Our World http://www.thedailygreen.com/environmental-news/latest/global-environmental-issues-1006#slide-8Deadly Viruses and

Bacteria Outsmart UsWhen animals are kept penned up in unnatural numbers in close proximity to people, as is the case with our food system worldwide, the chances grow for new diseases to outsmart us and either infect our foods or jump from wild lungs to our own.

Education

Chapter 7 ungc environmental principles